Wednesday, March 9, 2011

Cost-Benefit Analysis

Financial adviser Dan Danford answers this financial question from a viewer:

I'm trying to learn how to invest and I've heard that I need to do a cost-benefit analysis of my options. Could you explain this more and how I'm supposed to use it? Is there a formula I should be looking at?

Danford, MBA, CRSP, of Family Investment Center, explains how to perform a proper cost-benefit analysis and the importance of knowing what you are trying to accomplish financially.

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